In a significant development, Nehal Modi, the younger brother of fugitive diamond trader Nirav Modi, was arrested in New York on July 4, 2025. The arrest was made by US authorities in connection with an Interpol Red Corner Notice issued following a request by the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI). Nehal, a Belgian national, was arrested on charges related to India’s biggest banking scam—the ₹13,500 crore Punjab National Bank (PNB) fraud, undertaken by Nirav Modi and his associates.
Charges Under PMLA and IPC
According to officials, Nehal Modi has been charged under:
Section 3 of the Prevention of Money Laundering Act (PMLA)
Sections 120-B and 201 of the Indian Penal Code (IPC) with regard to criminal conspiracy and destruction of evidence.
He has been accused of facilitating the movement of around 50 kg of gold and substantial cash from Dubai, and permitting the routing of illegal funds through offshore accounts and shell companies, many of which were controlled by dummy directors in line with Nirav’s instructions.
PNB Scam Background: A ₹13,500 Crore Financial Fraud
The infamous PNB scam involves fraudulent letters of undertaking used by Nirav Modi and his uncle Mehul Choksi to defraud Punjab National Bank.
Court Hearing on July 17, Extradition Process Starts
Nehal Modi is currently in the custody of a United States court and will appear in court on July 17, 2025, where his lawyers will apply for bail. The US prosecutors have communicated their opposition to bail based on the seriousness of the allegations and the flight risk.
Where is Nirav Modi Now?
Nirav Modi, the main accused, remains imprisoned in Wandsworth Prison, London, where he has been fighting extradition since his arrest in March 2019. His appeals have been dismissed by UK courts since then.
Conclusion
Arresting Nehal Modi represents an important triumph for Indian agencies, bringing justice from one of the largest financial frauds in the country’s history. The extradition process is not ongoing; however, scrutiny on fugitive economic offenders, such as Nirav Modi and Mehul Choksi, worldwide will increase as India has intensified its diplomatic and legal efforts to return them home.
